CDB Approves US$17 Million for Geothermal Energy Development in Nevis
BRIDGETOWN, Barbados, December 20, 2022:
The Caribbean Development Bank (CDB) approved US$17 million in financing for a geothermal energy development project in Nevis, aimed at reducing electricity costs, reducing carbon emissions and increasing energy security.
OnDecember 9, the Bank’s board of directors approved the grant financing for the project which will help the Government of St Kitts and Nevis pursue the drilling of up to two geothermal production wells and one injection well. The project goal is to establish a geothermal power plant of capacity of ten megawatts, more than enough to meet all the domestic electricity demand in Nevis.
CDB’s Director of Projects, Mr. Daniel Best said the project could transform the energy landscape in the islands of St Kitts and Nevis.
“A 10 MW geothermal power plant on Nevis can generate more than 100% of the domestic demand on Nevis. If successful, the project will go a long way to helping the Federation realise their sustainable energy goals. These include transitioning from fossil fuel-based electricity generation to entirely renewable, while expanding generation and developing an interconnection between the two islands to increase resilience by allowing for the transfer of electrical power between St Kitts and Nevis, thereby not only benefitting the people of Nevis, but the Federation as a whole” said Best.
If the project achieves its initial goals, it will lay the groundwork for more ambitious goals such as expanding the Federation’s geothermal energy generation beyond that required for domestic use, to possibly support production and export of green energy commodities.
The project scope includes support to the Government and Nevis Electricity Company Ltd (NEVLEC) for project preparation, such as, preliminary surveys, surface exploration and environmental and social impact assessments, which are already ongoing, as well as infrastructure works, engineering, construction services and project management, and drilling services.
Funding for the project is from CDB’s Special Funds Resources (SFR), allocated from funding from the Inter-American Development Bank/Sustainable Energy Facility, the Green Climate Fund and the Government of Italy.
Best highlighted economic benefits of the project for St Kitts and Nevis, noting that currently 97% of electricity generation is dependent on imported fossil fuel.
“Like most of CDB’s Borrowing Member Countries (BMCs), St Kitts and Nevis is highly dependent on imported petroleum products to power its economy. This makes it vulnerable to external shocks such as those seen in the last six to 12 months due to the impacts of the war in Ukraine. It also consumes a large portion of its foreign exchange earnings. In 2018, fossil fuel imports reached as high as US$43.4mn – approximately four per cent of gross domestic product. This project can help St Kitts and Nevis build a far more secure energy future.”
Massy Gas
Dec 22 2022
Massy Gas Products Holdings Ltd (MGPHL) entered into a share purchase agreement with Caribbean Petroleum Marketing Ltd to acquire 100 per cent of the share capital of IGL (St Lucia) IBC Ltd for US $140.3 million.
According to a notice by the T&T Stock Exchange, the acquisition of the regional LPG distributor will represent a 7.3 per cent increase in Massy Group assets and will contribute to an increase in the group’s profit of approximately 7.1 per cent. For the gas products portfolio, the acquisition is expected to increase its profit before tax by 29.7 per cent.
IGL (St Lucia) IBC Ltd owns 100 per cent of the share capital of IGL Ltd, a company that has operated in Jamaica for six decades and whose primary business functions are the distribution of liquefied petroleum gas (LPG), manufacturing and distribution of industrial medical gases and the provision of a range of related services in both segments.
The notice said MGPHL entered into the agreement on December 19, 2022 and completion of the transaction remains subject to regulatory approval by the Jamaican Fair Trading Commission.
It said the acquisition of IGL (St Lucia) IBC Ltd from Caribbean Petroleum Marketing Ltd is part of the gas products portfolio’s growth strategy for its liquefied petroleum gas and industrial medical gases (IMG) business operation in Jamaica.
Currently, the gas products portfolio operates in Jamaica via subsidiary company and is already involved in the sale of LPG and IMG.
It was only recently that T&T’s distribution conglomerate, Massy Holdings acquired US grocery store chain Rowe’s IGA Supermarket for US$47 million.
The acquisition was made through Massy’s American subsidiary, Massy Stores (USA) LLC.
This is the second company Massy Holdings has bought in recent weeks.
The purchase of the supermarket chain came almost weeks after announcing the sale of the T&T business of French company, Air Liquide International SA to MGPHL.
The acquisition of Rowe’s IGA supermarkets was completed on December 12 and represents a one per cent increase in Massy Group’s assets and is expected to contribute to an increase in pre-tax profit of approximately four per cent.
IMF
Suriname:
Technical Assistance Report on Government Finance Statistics Mission (April 19-May 6, 2022)
Publication Date:December 1, 2022
Electronic Access:Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:This technical assistance (TA) mission on Government Finance Statistics was conducted during April 19– May 6, 2022. The main purpose of the mission was to review the progress made by the authorities in implementing previous TA recommendations and provide further support to improve fiscal data compilation and dissemination in line with international standards set out in the Government Finance Statistics Manual 2014.
Series:Country Report No. 2022/357 Subject: Economic sectors Financial crises Frequency:regular
Eastern Caribbean Currency Union:
Technical Assistance Report-Review of Regulations to New Securities Act and Investment Funds Act
Publication Date:December 1, 2022
Electronic Access: Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary: At the request of the Eastern Caribbean Securities Regulatory Commission (ECSRC), a Monetary and Capital Markets (MCM) Department mission conducted a review of a draft version of the new Investment Funds Regulations (IFR) and Securities Regulations (SR) form May 20–June 30, 2022. The two sets of regulations are a key part of the new regime to govern the capital markets in the member territories of the Eastern Caribbean Currency Union (ECCU).
Series:Country Report No. 2022/353 Subject: International organization Monetary policy
Frequency: regular ENGLISH Publication Date: December 1, 2022
IDB – Guyana
Dec 21, 2022
Inter-American Development Bank (IDB) says that Guyana programmes targeting vulnerable groups were necessary. amid significant economic disruptions.
Government decisions to increase public assistance payments and old-age pensions were important initiatives to counter price rises following the pandemic and the Ukraine/ crisis.
A quarterly Caribbean economics report from the Bank noted, “One important approach is to provide additional targeted assistance to lower-income groups, including the elderly. Public assistance payments for vulnerable groups were increased from US$57 to US$67 per month, benefitting approximately 18,000 people.”
The old age pension programme increases, culminating in a new pension of US$134 in 2022, benefitted 65,000 people. Beyond the measures acknowledged by the Bank, Guyanese authorities also distributed one-off cash grants for all households and later, for targeted groups.
Other countries adopted policy relief measures. In Jamaica, electricity subsidies were provided to households consuming little electricity; in Trinidad and Tobago, a one-off transport grant was provided; and, in the Bahamas, price controls for some goods and medicines were introduced.
IMF
Barbados
Request for an Arrangement Under the Extended Fund Facility and Request for an Arrangement Under the Resilience and Sustainability Facility
-Press Release; and Staff Report
Publication Date:December 16, 2022
Electronic Access:Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary: Despite a series of economic shocks, Barbados has made good progress in implementing its Economic Recovery and Transformation (BERT) plan since the government led by Prime Minister Mia Mottley took office in May 2018.
Macroeconomic stability was restored with a combination of comprehensive sovereign debt restructuring, fiscal consolidation, and structural reforms to reduce fiscal dominance and enhance growth.
International reserves have increased to US$1.4 billion by end-September 2022 from a historical low of US$220 million in 2018. While fiscal consolidation was interrupted by the COVID-19 pandemic, public debt was put back on a downward path starting in FY2021/22.
Building on the successful completion of a 2018-22 Extended Fund Facility (EFF), the authorities have requested a successor EFF program along with a Resilience and Sustainability Facility (RSF) to strengthen fiscal sustainability, support the structural reform agenda, and increase resilience to climate change.
Series:Country Report No. 2022/377
Subject: International organization Monetary policy
Frequency: regular